A cost-based importance measure for system components: An extension of the Birnbaum importance

• DOI: 10.1016/j.ejor.2012.09.034
• Publication Date: 2012-09-27T22:23:49Z
• Authors: Shaomin Wu; Frank P.A. Coolen
• Keywords: Component (thermodynamics); Time horizon

In reliability engineering, component importance measures are used to prioritise components in a system for purposes such as reliability improvement and maintenance planning. Existing importance measures have paid little attention to the costs incurred by maintaining a system and its components within a given time period. Cost-effectiveness analysis, however, is critically important in increasingly competitive markets. This paper proposes a new cost-based importance measure which considers costs incurred by maintaining a system and its components within a finite time horizon. Possible extensions are discussed and examples are given to show the use of the new measure.